Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Khumo an aspiring Industrial engineer is in charge of purchasing at a hardware store. Khumo has determined that the annual demand for generators has gone

image text in transcribed
Khumo an aspiring Industrial engineer is in charge of purchasing at a hardware store. Khumo has determined that the annual demand for generators has gone up to 100,000 units due to Eskom load shedding. She estimates that it costs R10 every time an order is placed. This cost includes her wages, the cost of the forms used in placing the order, and so on. Furthermore, she estimates that the cost of carrying one screw in inventory for a year is one-half of 1 cent. a. Calculate the economic Order Quantity (3 Marks) b. Calculate the Number of Orders per year (3Marks c. Calculate the Total Ordering cost (3 Marks) d. Calculate the average Inventory (3 Marks) e. Calculate the Total Holding Cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analytical Finance Volume I

Authors: Jan R. M. Röman

1st Edition

3319340263, 978-3319340265

More Books

Students also viewed these Finance questions

Question

Analyse the various techniques of training and learning.

Answered: 1 week ago